Thai king signs delayed $100 billion budget into law

The budget, delayed since the Oct. 1 start of the 2020 fiscal year, forecasts a rise of 7% in overall spending to 3.2 trillion baht ($101 billion), with a deficit of 469 billion baht.

The budget is much needed to shore up the economy which expanded just 2.4%, the slowest pace in five years, last year, due to declining exports and sluggish investment.

This year will likely be tougher as tourism is being hit by the coronavirus outbreak, which originated in China, Thailand's biggest source of foreign visitors.

Spending, however, may not be quick, analysts say.

"We think it is unlikely that expenditure disbursements will accelerate immediately, particularly for public sector capex as projects take time to kick off," said Charnon Boonnuch, economist of Nomura in Singapore.

Copyright Reuters, 2020

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